TOYOTA KIRLOSKAR MOTORS PVT. LTD.,,BENGALURU vs. DCIT, CENTRAL CIRCLE-2(1), BANGALORE

PDF · subscribers
ITA 3052/BANG/2025Status: DisposedITAT Bangalore18 May 2026AY 2021-223 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal allowed the withdrawal of grounds related to the transfer pricing adjustment due to the APA. It directed the Assessing Officer to verify and grant the correct TDS credit. The issue of interest under section 234A was restored to the Assessing Officer for decision, while the interest under section 234B was dismissed as consequential.

What were the facts?

The assessee sought to withdraw grounds related to a transfer pricing adjustment as the assessment year was covered by an Advance Pricing Agreement (APA). The assessee also disputed the restriction of TDS credit and the chargeability of interest under sections 234A and 234B.

What were the issues?

Whether grounds related to transfer pricing adjustment are to be dismissed due to an APA, and the correct calculation of TDS credit and interest under sections 234A and 234B.

Which sections of the Income-tax Act were involved?

Section 234A,Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH : BANGALORE

Before: SHRI PRASHANT MAHARISHI, VICE – & SHRI KESHAV DUBEY

For Appellant: Shri Gagan, Young Professional

IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE – PRESIDENT AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No. 3052/Bang/2025 Assessment Year : 2021-22

M/s. Toyota Kirloskar Motor Private Limited, The Deputy Commissioner of Plot No. 1, Income Tax, Bidadi Industrial Area, Central Circle – 2 (1), Vs. S.O. Bidadi, Ramanagar, Bengaluru. Bengaluru – 562 109. PAN: AAACT5415B APPELLANT RESPONDENT

: Shri Padamchand Khincha, CA Assessee by : Shri Gagan, Young Professional Revenue by on behalf of the Department

Date of Hearing : 06-05-2026 Date of Pronouncement : 18-05-2026

ORDER PER PRASHANT MAHARISHI, VICE – PRESIDENT 1. ITA No. 3052/Bang/2025 is filed by Toyota Kirloskar Motor Private Limited [The Assessee/ Appellant] for Assessment Year 2021-22 against the Assessment Order passed by the Ld. Deputy Commissioner of Income Tax, Central Circle – 2(1), Bengaluru (the Ld. Assessing Officer) in pursuance of the direction of the Ld. Dispute Resolution Panel – 2, Bengaluru (the Ld. DRP) and consequent to the order of the Ld. Transfer Pricing Officer, Assistant Commissioner of Income Tax (TP) 2(2)(2), Bengaluru [the ld TPO] dated 05.11.2025 being the rectification of the order giving effect wherein the Transfer Pricing Adjustment of Rs. 6,37,96,51,336/- is made.

2.

In the Appeal memo, the Assessee has raised ground no. 1-11 on the transfer pricing adjustment. At the time of hearing, the Assessee submitted a letter dated 04.05.2026 submitting that Assessee arrived at an APA on 29.03.2019 wherein the impugned Assessment Year 2021-22 is also covered herein and therefore in view of the para no.

ITA No. 3052/Bang/2025 Page 2 of 3 2 being the terms of agreement and therefore Assessee would like to withdraw these grounds.

3.

The Ld. Departmental Representative does not have any objection.

4.

In view of the above facts, as per APA dated 31.03.2026 entered into by the Assessee and where para 2 shows that Assessment Year 2021-22 is a covered year by the above APA, the ground no. 1-11 of the Appeal are treated as withdrawn and hence dismissed.

5.

Ground no. 12 is with respect to the restriction of TDS credit at Rs. 6,98,95,897/- instead of Rs. 6,99,11,884/- as claimed in the return of income. We direct the Ld. Assessing Officer to consider the correct tax credit of TCS available to the Assessee and accordingly, grant the same after due verification. Accordingly, ground no. 12 is allowed for statistical purposes.

6.

Ground no. 13 and 14 are with respect to the chargeability of interest u/s. 234A and 234B of the Act. The claim of the Assessee is that the due date of filing of the return for the impugned Assessment Year is 15.03.2022 and Assessee has filed the return of income on 12.03.2022 and therefore no interest u/s. 234A may be charged.

7.

We have carefully examined the above argument and direct the Ld. Assessing Officer to decide the issue in accordance with the law and whether the date of extension of filing of the return of income was subject to payment of interest u/s. 234A of the Act or not. The ground of charging of interest u/s. 234B of the Act is consequential in nature. Thus, ground no. 13 is restored back to the file of the Ld. Assessing Officer for verification and ground no. 14 is consequential in nature, dismissed.

8.

Accordingly, appeal of the Assessee is partly allowed as indicated above.

Order pronounced in the open court on 18th May, 2026.

Sd/- Sd/- (KESHAV DUBEY) (PRASHANT MAHARISHI) JUDICIAL MEMBER VICE-PRESIDENT Bangalore, Dated, the 18th May, 2026. *TNTS*

ITA No. 3052/Bang/2025 Page 3 of 3 Copy to: 1. Appellant 2. Respondent 3. CIT 4. DR, ITAT, Bangalore 5. CIT(A) By order

Assistant Registrar, ITAT, Bangalore

More judgments on Section 234A

All 5,126 judgments and leading authorities on Section 234A →

Recent GST High Court judgments

Search GST case law →